PARIS & SAN FRANCISCO--(BUSINESS WIRE)--SpineGuard (FR0011464452 – ALSGD), an innovative company that designs,
develops, and markets disposable medical devices intended to make spine
surgery safer, announced today that its third quarter revenue grew to
€1.7 million, a 2% increase compared with 3Q 2015.

Pierre Jérôme, CEO and co-founder of SpineGuard, said: “After six
consecutive quarters of more than 20% growth in the US, sales growth
slowed in the third quarter of 2016. Since the US FDA clearance of the
PediGuard Threaded in June, the US team has been actively preparing the
commercial launch of this breakthrough product scheduled for the NASS
(North American Spine Society) congress at the end of October in Boston.
Our sales managers and product specialists are already promoting this
very promising new extension of SpineGuard’s DSG™ technology with
agents, surgeons and hospital purchasing committees. We experienced
similar situations in the past when launching the PediGuard Curved, the
PediGuard Cannulated and the PediGuard XS. In the rest of world, the
quarter growth was solid, mainly driven by Europe and the Middle East.”

€ thousands - IFRS

2016

2015

Variance

First Quarter

1 760

1 517

+16%

Second Quarter

1 873

1 452

+29%

Half-Year

3 633

2 970

+22%

Third Quarter

1 678

1 646

+2%

Year to Date 9 Months

5 311

4 616

+15%

Unaudited

Global revenue in the third quarter of 2016 increased 2% to €1,678k,
compared with €1,646k in the third quarter of 2015. In the USA, the
decrease was 3% both as reported and at constant exchange rate (cc),
while the rest of the world increased 29%.

For the 9 months, global revenue increased 15% to €5,311k, compared with
€ 4,616k in the first nine months of 2015. The growth in the United
States was 15% at both actual exchange rate and cc.

6,324 PediGuard units were sold in the first nine months of 2015
compared with 5,580 in the first nine months of 2015, including 3,581 in
the United States, representing 57% of total units sold.

Next financial press release: 2016 full year revenue, January 5, 2017SpineGuard
will participate at Actionaria retail investor show on November 18 and
19 in Paris.

About SpineGuard®Co-founded in 2009 in France and the USA
by Pierre Jérôme and Stéphane Bette, SpineGuard’s mission is to make
spine surgery safer by bringing real-time digital technology into the
operating room. Its primary objective is to establish its proprietary
DSG™ (Dynamic Surgical Guidance) technology as the global standard of
surgical care, starting with safer screw placement in spine surgery and
then in other surgeries. PediGuard®, the first device designed using
DSG, was co-invented by Maurice Bourlion, Ph.D., Ciaran Bolger, M.D.,
Ph.D., and Alain Vanquaethem, Biomedical Engineer. It is the world’s
first and only handheld device capable of alerting surgeons to potential
pedicular or vertebral breaches. Close to 50,000 surgical procedures
have been performed worldwide with PediGuard. Numerous studies published
in peer-reviewed medical and scientific journals have demonstrated the
multiple benefits that PediGuard delivers to patients, surgical staff
and hospitals. In 2015, SpineGuard started to expand the applications of
DSG into pedicle screws through partnerships with innovative surgical
companies in France and the US. SpineGuard has offices in San Francisco
and Paris.

DisclaimerThe SpineGuard securities may not be offered or
sold in the United States as they have not been and will not be
registered under the Securities Act or any United States state
securities laws, and SpineGuard does not intend to make a public offer
of its securities in the United States. This is an announcement and not
a prospectus, and the information contained herein does and shall not
constitute an offer to sell or the solicitation of an offer to buy, nor
shall there be any sale of the securities referred to herein in the
United States in which such offer, solicitation or sale would be
unlawful prior to registration or exemption from registration.